Los Angeles Wants Fee Fight With American in Federal Court

City Seeks to Move Dispute Outside of Bankruptcy Court

By

Peg Brickley

Jan. 3, 2014 12:11 p.m. ET

Los Angeles wants a long-running battle over hangar fees with American Airlines to continue outside of bankruptcy court now that the airline has emerged from Chapter 11 protection and merged with US Airways Group Inc.

Papers filed Thursday in a Manhattan bankruptcy court ask relief from the Chapter 11 plan injunction barring continued legal action against American so Los Angeles can take its case to federal court in California.